Building Customer Relationships- Customer Feedback
Customer feedback is vital for business growth. Your business is, after all, built entirely around your customers. This is why whenever you log on to websites or use an application, you are asked to provide a review or give some sort of feedback: the customer’s opinion is the most important piece of information a business can have.
Customer Feedback: Your Greatest Source of Learning
What is Customer Feedback and Why Does It Matter?
Think back to the last time that a cashier handed you a receipt with the link to a survey at the bottom of it. Or the last time that you bought something online and were sent an email asking you to leave a review for the product. Both the receipt with the survey and the request for a review are examples of companies asking you, their customer, for feedback.
Customer feedback is information given by customers about their experience with a company’s products or services. It provides insight into their satisfaction level and paints a picture of how they feel about the product or service that they received.
Collecting feedback empowers businesses to improve the customer experience through informed decisions. It allows you to know what you’re getting right and what you’re getting wrong in the eyes of the customer. Everyone loves to receive praise, but negative feedback is especially powerful, as it reveals where there is room for improvement. Microsoft founder Bill Gates took this idea to heart, as seen in the quote on the right. Collecting customer feedback is an essential practice for any companies that wants to put customer satisfaction at the forefront.
Collecting Customer Customer Feedback
Before you can begin collecting feedback, it is important to identify the reason that you’re looking for feedback. Having specific goals in mind that sets the groundwork for the entire process, it can help you determine how to reach your customers, what to ask them, and what to do with the answers that you receive. After all, data collection is great, but it becomes overwhelming and futile without any idea of what to look for in the data. Some examples of goals include the following:
Understanding trends in customer satisfaction
Identity customer service issues
Uncover product performance deficiencies
Improves a specific aspect of the customer experience
What to Ask and How to Ask It
There are a variety of different tools that can be used to gauge how customers feel about their experience with your business. The best way to measure this depends on what you want to learn from your customers and how you want to reach them (more on channels in the next section).
1. Net Promoter Score (NPS)
Net Promoter Score (NPS) measures the likelihood that a person will recommend your product or service. It’s one question with a scale of 1 to 10.
NPS is calculated by subtracting the percentage of detractors (customers who would not recommend you) from the percentage of promoters (customers who would recommend you.
2. Customer Satisfaction Score (CSAT)
Customer Satisfaction Score (CSAT) measures how satisfied a customer is with a specific interaction with a company. Like NPS, it’s only one question.